A capital improvement is a major improvement to a property that increases its value. Capital improvements can include things like adding a new room, renovating a kitchen or bathroom, or installing new windows or doors.
Capital improvements are typically financed through a
loan, and the loan is repaid over time through property taxes or rent payments. Capital improvements can increase the value of a property by making it more attractive to buyers or renters. They can also improve the quality of life for residents by making their homes more comfortable or energy-efficient.